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Amazon.com Associates Program Celebrates 500,000 Member Milestone With New-Customer Referral Bonuses

SEATTLE--Aug. 3, 2000--Leading online retailer Amazon.com (www.amazon.com) today announced that enrollment in its Associates Program has reached 500,000 members, reinforcing its position as the largest and most popular program of its kind.

To celebrate this milestone and thank its Associates, Amazon.com has launched a new-customer bonus initiative. Associates will now receive bonus payments based on the number of new customers they refer to the site through December 2000.

Amazon.com pioneered the concept of online syndicated selling with its Associates Program, which was started in July 1996. By simply linking to Amazon.com, Associates can earn referral fees of up to 15 percent on certain items when visitors click through to Amazon.com to make purchases.

Additionally, Associates will earn a bonus for referring 10 or more new customers per quarter to Amazon.com from now through the end of the year. New-customer bonuses will be paid quarterly, with the first checks to be issued in October. Bonuses will be calculated according to the following new-customer threshold levels: -0-

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         New Customers Referred             Bonus Payment
         ----------------------             -------------
         10-19                              $20
         20-49                              $50
         50-99                              $150
         100-199                            $350
         200-499                            $800
         500-999                            $2,250
         1,000 +                            $5,000 + $5 for each new
                                               customer over 1,000

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"The Amazon.com Associates Program is more exciting and more powerful than ever, and the new-customer bonus pays tribute to the half million Associates who have played a key role in introducing new customers to Amazon.com," said Owen Van Natta, vice president of business development at Amazon.com. "With millions of unique items, Amazon.com lets Associates merchandise products closely related to the content of their sites; moreover, Amazon.com's incredible selection means a customer buying a book through an Associates link can add a CD, a cordless drill, a blender and a Palm handheld to the Shopping Cart, raising the total dollar value of the order and earning the Associate higher referral fees."

Amazon.com's Associates network includes Web sites of all sizes and virtually every area of interest. The Associates Program's record-setting enrollment is evidence of its versatility and wide appeal across multiple product categories.

Additional information on Amazon.com's Associates Program can be found at http://www.amazon.com/associates.

About Amazon.com

Amazon.com (Amazon.com, Inc., and its subsidiaries) is the Internet's No. 1 music, No. 1 DVD and video, and No. 1 book retailer. Amazon.com (Nasdaq:AMZN) opened its virtual doors on the World Wide Web in July 1995 and today offers Earth's Biggest Selection, along with online auctions and free electronic greeting cards. Amazon.com seeks to be the world's most customer-centric company, where customers can find and discover anything they may want to buy online. Amazon.com lists more than 18 million unique items in categories including books, CDs, toys, electronics, videos, DVDs, tools and hardware, lawn and patio items, kitchen products, software, and video games. Through Amazon.com zShops, any business or individual can sell virtually anything to Amazon.com's more than 23 million customers, and with Amazon.com Payments, sellers can accept credit card transactions, avoiding the hassles of offline payments. The company also participates in sothebys.amazon.com, the leading auction site for guaranteed art, jewelry and collectibles, at www.sothebys.amazon.com.

Amazon.com operates two international Web sites: www.amazon.co.uk and www.amazon.de. It also operates the Internet Movie Database (www.imdb.com), the Web's comprehensive and authoritative source of information on more than 220,000 movies and entertainment programs and 800,000 cast and crew members dating from the birth of film in 1892 to 2003.

Amazon Anywhere is the leader in mobile e-commerce, providing access from anywhere in the world to Amazon.com, Amazon.co.uk and Amazon.de on personal digital assistants (PDAs) and through handheld wireless Internet devices that use HDML or the Wireless Application Protocol.

Amazon.com has invested in leading Internet retailers that are improving the lives of customers by making shopping easier and more convenient: Greenlight.com, the only company that offers car buyers the control of auto purchasing online with ongoing service and support from local dealerships, at www.greenlight.com; living.com, the leading online home products and services retailer, at www.living.com; drugstore.com, an online retail and information source for health, beauty, wellness, personal care and pharmacy, at www.drugstore.com; Pets.com, the online leader for pet products, expert information, and services, at www.pets.com; HomeGrocer.com, the first fully integrated Internet grocery-shopping and home-delivery service -- with operations in Seattle; Portland, Oregon; and Southern California -- at www.homegrocer.com; Gear.com, which offers brand-name sporting goods at prices from 20 to 90 percent off retail, at www.gear.com; Ashford.com, the leading Internet retailer of luxury and premium products and the Web's No. 1 retailer of watches and jewelry, at www.ashford.com; Audible, Inc., the leader in Internet-delivered spoken audio for PC-based listening or playback on AudibleReady portable digital audio devices, at www.audible.com; eZiba.com, a leading online retailer of handcrafted products from around the world, at www.eziba.com; and WineShopper.com, the San Francisco- and Napa-based Internet start-up that will ultimately offer consumers online access to the largest selection of wines available anywhere, at www.wineshopper.com.

Amazon.com also has a minority interest in WeddingChannel.com, which brings together leading retailers with gift registry, expert advice and personalized gift suggestions to help everyone give and receive the right wedding gifts, at www.weddingchannel.com; NextCard, Inc., considered the industry's leading issuer of consumer credit on the Internet, at www.nextcard.com; and Kozmo.com, the world's leading "e-mmediate" Internet-to-door delivery service, at www.kozmo.com.

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve risks and uncertainties that include, among others, Amazon.com's limited operating history, anticipated losses, significant amount of indebtedness, unpredictability of future revenues, potential fluctuations in quarterly operating results, seasonality, consumer trends, competition, risk of distribution center expansion, risks related to fourth quarter performance, risks of system interruption, management of potential growth, inventory risks, risks related to auction and zShops services, risks related to fraud and Amazon.com Payments, and risks of new business areas, international expansion, business combinations and strategic alliances. More information about factors that potentially could affect Amazon.com's financial results is included in Amazon.com's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 1999, and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2000.


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